Labor Smart Inc (LTNC)

[sobe4life]

Well, if we want to talk about stating facts regarding specifics about LTNC then so be it...

in addition to over $1 million in delinquent payroll taxes all wrapped up in an IRS lien

Yes, the company was behind in their payroll taxes. However, since March they have worked out a Binding Agreement with the IRS. Because of this, the IRS no longer considers them deliquent as long as they uphold the Agreement and make their agreed upon monthly payments. As a matter of fact, one of the conditions of the Agreement is that Labor SMART must be current and on time with their payroll tax obligations. You can't have it both ways, either you are current or you are deliquent.

Additionally, what I find even more interesting is the fact that although the IRS did place a lien on the company (standard operating procedure), they ARE NOT in a first position as a lien holder. Factually, Transfac holds first position as required for the funding of receivables through their credit facility.

So while some work feverishly to make this look like a big problem, the IRS doesn't seem to agree and is now satisfied with the terms that have been worked out.

"Show me a company that has never made a mistake and I'll show you a company that has never experienced true success."